Year-on-Year
The Producer Price Index (PPI) for manufacturing posted an increase of 7.2 percent in October 2022. This annual rate is a slowdown compared to the annual increment of 7.5 percent last September 2022. In the same month of the previous year, the PPI grew at an annual rate of 0.6 percent. (Table A and 1)
The expansion in the PPI in October 2022 can be attributed to the annual upturns in the indices of 20 industry divisions led by manufacture of coke and refined petroleum products, which registered a two-digit annual growth of 14.5 percent.
On the contrary, the two industry divisions that exhibited decrements were the manufacture of machinery and equipment except electrical and printing and reproduction of recorded media with annual declines of -2.9 percent and -0.1 percent, respectively.
Month-on-Month
Month-on-month, the PPI for manufacturing slightly increased in October 2022 with a 0.2 percent monthly growth rate as compared to the monthly increment of 0.7 percent in September 2022. In October 2021, the PPI recorded a monthly growth of 0.5 percent. (Table A and 1)
Nine among the 22 industry divisions registered positive monthly growth rates in October 2022 led by the manufacture of food products with a monthly increase of 1.0 percent.
In contrast, the PPI of ten industry divisions exhibited decrements with manufacture of computer, electronic and optical products posting the largest monthly decrease at -0.3 percent. Meanwhile, the monthly growth rates of manufacture of beverages, manufacture of leather and related products, including footwear, and manufacture of textiles are at 0.0 percent. (Tables A-2 and 1)
Manufacture of food products
The PPI for manufacture of food products further grew in October 2022, registering an annual rate of 9.5 percent compared with the 8.7 percent annual upturn observed in September 2022.
The increment in October 2022 PPI was attributed by the annual increases in the PPI of all eight industry groups under the manufacture of food products. Moreover, double-digit upturns were recorded in three industry groups, namely: processing and preserving of fish, crustaceans and mollusks (18.1%), manufacture of grain mill products, starches and starch products (17.5%), and manufacture of prepared animal feeds (16.9%). (Tables 1 and 2)
On a month-on-month basis, the PPI for the manufacture of food products exhibited an upward trend with a monthly growth rate of 1.0 percent in October 2022. In September 2022, it decreased by -0.05 percent. All eight industry groups of food manufacturing contributed to the increase of its PPI. This was led by the processing and preserving of fruits and vegetables posting a monthly rate of 4.4 percent. (Tables 1 and 2)
DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General
- Introduction
- Method of Index Computation
Note:
A linking factor is computed every time weights are changed. The linking factor is used to adjust new series for comparability with the old series.
- Computation of Growth Rates
Year-on-year growth rates are computed by dividing the current month’s index by the index of the same month of the previous year less 1.
Month-on-month growth rates are computed by dividing the current month’s index by the previous month’s index less 1.
- Imputation and Revision
Imputation is done for sample establishments that are in operation during the reference period but with no received response during the release date. Results are revised accordingly when the actual data are received, and these revisions are reflected in the next release.
- Industry Coverage
Starting with the January 2013 reference month, PPI utilizes the 2009 Philippine Standard Industrial Classification (PSIC) to classify sectors and industries. Selected industry groups of the 2009 PSIC were grouped to form the 22 industry divisions of the 2021 PPS. These are presented in the table below.
2009 PSIC CODE |
INDUSTRY DESCRIPTION |
---|---|
C10 |
Manufacture of food products * |
C11 |
Manufacture of beverages |
C12 |
Manufacture of tobacco products |
C13 |
Manufacture of Textiles |
C14 |
Manufacture of wearing apparel |
C15 |
Manufacture of leather and related products, including footwear |
C16 |
Manufacture of wood, bamboo, cane, rattan articles, and related products products* |
C17 |
Manufacture of paper and paper products |
C18 |
Printing and reproduction of recorded media |
C19 |
Manufacture of coke and refined petroleum products |
C20 |
Manufacture of chemical and chemical products* |
C21 |
Manufacture of basic pharmaceutical products and pharmaceutical preparations |
C22 |
Manufacture of rubber and plastic products* |
C23 |
Manufacture of other non-metallic mineral products* |
C24 |
Manufacture of basic metals* |
C25 |
Manufacture of fabricated metal products, except machinery and equipment* |
C26 |
Manufacture of computer, electronic, and optical products* |
C27 |
Manufacture of electrical equipment* |
C28 |
Manufacture of machinery and equipment except electrical* |
C29, C30 |
Manufacture of transport equipment* |
C31 | Manufacture of furniture |
C32, C33 | Other manufacturing |
* Industry divisions categorized further into industry groups
See more at the Producer Price Survey (PPS) main page.